NEWS & UPDATES

NCIGF Releases Winter Insolvency Trends 2018

National Conference of Insurance Guaranty Funds (NCIGF) has released the winter issue of its biannual Insolvency Trends 2018 white paper.

Authored by the NCIGF legal and public policy staff, Insolvency Trends 2018 provides a complete update on recent developments in insolvency law and practice, and a look at what is on the horizon in the year ahead.

Charles Renn Tapped as NCIGF Board Chairman

Indianapolis, IN, May 9, 2017 – The Board of Directors of the National Conference of Guaranty Funds (NCIGF) has elected Charles F. (Chuck) Renn, Executive Director of the Missouri Property and Casualty Insurance Guaranty Association, as the NCIGF’s new board chairman. Renn assumed the two-year board chairmanship at the NCIGF’s 2017 annual meeting in Minneapolis on May 4. Renn has served on the NCIGF board since 2009. He was the NCIGF board’s vice chair from 2015 to 2017. The NCIGF is a nonprofit, member-funded association that provides national assistance and support to the property and casualty guaranty funds located in each of the 50 states and the District of Columbia. The NCIGF coordinates information for multi-state insolvencies and provides legal, data management, administrative, communications and public policy support to its members across the nation. Renn has served as Executive Director of the Missouri Property and Casualty Insurance Guaranty Association for 16 years. He holds the same position for the Missouri Life and Health Guaranty Association and has held that position for 25 years. Prior to filling the role of Executive Director, Mr. Renn worked for the Missouri Department of Insurance for 14 years, where, among other positions he held, he served as the Director of the Division of Company Regulation for six years. Mr. Renn, a Certified Public Accountant, holds several professional designations, including Fellow, Life Management Institute and Certified Insurance Examiner. He serves on numerous task forces and committees of the NCIGF and the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA). In his address to the NCIGF membership following his election to board chairman, Renn said that a focus during his term would be on ensuring the property and casualty guaranty funds continues to occupy an integral place in the insurance resolution process. “The guaranty fund system is now a critical component of the insurance resolution process,” said Renn. “As Chairman of the NCIGF board, I will strive to do my best to anticipate the impact of changes that could affect our ability to fulfill our purpose. And, where possible, I will be equally diligent in trying to identify opportunities for the organization to solidify our role in the resolution process.” Nick Crews 317-464-8106 317-213-7227 (cell) ncrews@ncigf.org NCIGF President and CEO Roger Schmelzer said Renn’s election to NCIGF board chairmanship will keep the NCIGF focused on its strategic objectives during a critical time in the organization’s development. “Chuck has a clear understanding of and vision for the role the guaranty funds play in the financial services industry and their support of the insurance promise,” said Schmelzer. “NCIGF staff – and the property and casualty guaranty fund community overall – look forward to Chuck’s leadership over the course of his term.”

Facts and Statistics

The Property and Casualty Guaranty Fund System At-A-Glance

The nation's property and casualty guaranty funds are a non-profit system created by state statutes that pays claimants' outstanding covered claims against insolvent insurance companies.

Created by policymakers and the insurance industry nearly 40 years ago, the guaranty fund system was designed to protect those least able to deal with losses associated with insurance company failure - the average "citizen" or small business policyholder or claimant.

The GF system has safeguarded countless policyholders who might otherwise face financial ruin because of unpaid claims.

Since the early 1970's, there have been about 600 insolvencies of property and casualty insurers.

In total, the system has paid out more than $30 billion.

Guaranty funds pay covered claims within limits set by individual state laws and the insurance contract. Claim caps apply: guaranty funds generally pay the amount of coverage stipulated by the policy or $300,000, whichever is less. These "caps" are fixed by state law; the guaranty funds play no role in setting coverage caps. Most guaranty funds pay 100 percent of their state's statutorily defined workers' compensation benefits.

The guaranty fund system offers coverage of covered claims, but not a "replacement policy."

A guaranty fund system also exists for the life, health and annuity insurance industry; but it operates independently from the property and casualty system.

Property and casualty guaranty funds are active in every state, the District of Columbia, Puerto Rico and the Virgin Islands.

The National Conference of Insurance Guaranty Funds, an Indianapolis-based organization, provides national assistance and support to the nation's property and casualty guaranty funds.